What is the return on equity for a firm with a 10% return on assets, a 6% return on debt, and a 0.75 debt/equity ratio? a. 12.00% b. 13.00% c. 14.75% d. 15.50%

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 6P
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What is the return on equity for a firm with a 10% return on assets,
a 6% return on debt, and a 0.75 debt/equity ratio?
a. 12.00%
b. 13.00%
c. 14.75%
d. 15.50%
Transcribed Image Text:What is the return on equity for a firm with a 10% return on assets, a 6% return on debt, and a 0.75 debt/equity ratio? a. 12.00% b. 13.00% c. 14.75% d. 15.50%
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